By Mudit Dube
Copyright newsbytesapp
Elon Musk has responded to Tesla’s board of directors’ unprecedented pay package proposal of $1 trillion by buying $1 billion worth of Tesla stock. The purchase was made through an irrevocable trust on September 12, according to a regulatory filing released on Monday. The news sent Tesla shares up over 5%, pushing the company’s value into positive territory for the year. This is Musk’s first open-market purchase of Tesla stock in more than five years, Bloomberg reported. Back in 2022, he had sold off more than $20 billion worth of the company’s shares after acquiring Twitter. Other Tesla executives have also sold some of their shares this year, including several board members. Musk is currently Tesla’s largest shareholder with a 13% stake in the company. His purchase of 2.57 million shares last week has increased his stake in Tesla by less than 1%. However, Musk has expressed his desire for more control over the company to influence its mission. The board’s plans are aimed at achieving this goal. Tesla’s stock price has been volatile this year, owing to rising competition in the EV market and Musk’s political activities. The company’s share of the US EV market recently fell below 40%, as sales continue to slow down and other models attract buyers. Despite these challenges, Musk is betting on AI and robotics for Tesla’s future. Musk’s new master plan seems to downplay Tesla’s core business of making and selling electric cars. He has also warned that the company could face a few rough quarters as the US government phases out EV incentives and sales are expected to decline further. Despite these challenges, Musk remains optimistic about Tesla’s long-term prospects in the AI and robotics space.
